Abraxis BioScience to Spin Off Unit

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Abraxis BioScience Inc. said Tuesday its board approved creation of a new company, Abraxis Health Inc., which will focus on identifying genetic biomarkers for disease to create new personalized medicine therapies.

Abraxis Health will obtain the assets and liabilities constituting the drug discovery and related operations now conducted through Abraxis BioScience. Patrick Soon-Shiong, chairman and chief executive of Abraxis BioScience, will also serve the same roles in the new company.

The split will enable Abraxis BioScience to better concentrate on developing new markets for the cancer drug Abraxane, said the company, which is conducting several trials for the drug in different tumors.

“Abraxis Health will become a pioneer in the burgeoning area of personalized medicine, creating a new paradigm in medical care,” Soon-Shiong said in a statement. “To do this we must evaluate biological systems in personalized medicine and change the way we develop drugs and how we identify the patient for whom we are developing new drugs.”

Abraxis BioScience shareholders will receive shares of Abraxis Health and continue to hold their shares of Abraxis BioScience.

Abraxis shares closed down 53 cents, or 1 percent to $69.65 on the Nasdaq.

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